WHEELS GLOBAL FOUNDATION,NEW DELHI V. CIT(E), NEW DELHI

ITA 6142/DEL/2024

AI Insights

The case involves Wheels Global Foundation, which appealed against the order of the Commissioner of Income Tax (Exemption) that dismissed their application for approval under Section 80G(5) of the Income-tax Act, 1961. The initial rejection was based on incomplete replies to notices issued by the CIT(E), and the provisional registration was also cancelled. The assessee contended that the replies were partial due to the illness of the responsible official. The Tribunal found that the assessee was not given a proper opportunity of hearing as per the principles of natural justice and decided to set aside the CIT(E)'s order and remand the matter for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31742 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA; ANAND
• Assessee Lawyers: M P RASTOGI
• Keywords: Set aside; Opportunity of being heard; Non passing of speaking order

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “DIVISION BENCH-H” NEW DELHI Before: Shri Mahavir Singh, Vice President & Shri Ramit Kochar, Accountant Member Wheels Global Foundation 5, Ground Floor, Golf Links, New Delhi-110003 PAN:AABCW8688E (Appellant) v. The Commissioner of Income Tax (Exemption) Civic Centre Minto Road New Delhi-110002 (Respondent) Assessee by: Shri M P Rastogi, Advocate & Shri Shivam Malik, Advocate Revenue by: Ms. Anupama, Anand, CIT-DR & Shri Sanjay Kumar, Sr. DR Date of hearing : 28-02-2025 Date of pronouncement : 28-02-2025 आदेश आदेश आदेश आदेश/ORDER This appeal in ITA No. 6142/Del/2024 for assessment year:NA, filed by the assessee before Income Tax Appellate Tribunal, Delhi ‘H’ Bench, New Delhi has arisen from the order dated 27.11.2024 passed by Ld. Commissioner of Income- tax(Exemption), Delhi, in DIN & Notice No. ITA No.6142/Del/2024 Assessment Year: NA I.T.A No.6142/Del/2024 A.Y.:NA Page No. Wheels Global Foundation 2 ITBA/EXM/F/EXM45/2024-25/1070669032(1) dismissing application filed by the assessee in Form No. 10AB dated 23.05.2024 for approval under clause (iii) of first proviso to Section 80G(5) of the Income-tax Act,1961 , wherein provisional registration earlier granted for the period 23.11.2021 to assessment year 2024-25 also stood cancelled by ld. CIT(E). 2.The assessee filed early hearing petition requesting to fix the appeal at an early date as the assessee is stated to be facing financial crisis. While hearing early hearing petitions, it was observed that the order dated 27.11.2024 rejecting assessee’s application for approval u/s 80G(5) was passed by ld. CIT(E) on the grounds that the assessee has only filed part replies , while the assessee having raised grounds of appeal that proper opportunity of hearing in accordance with principles of natural justice were not granted by ld. CIT(E), and the application of the assessee stood dismissed on the grounds of limitation. It is also contended that part replies were filed as the person responsible was suffering from Chikanguniya. The appeal was taken up for final hearing after taking consent of both the parties. 4. The brief facts of the case are that the assessee filed an application dated 23.05.2024 in Form No 10AB for approval u/s 80G(5). The provisional approval was granted by Revenue I.T.A No.6142/Del/2024 A.Y.:NA Page No. Wheels Global Foundation 3 on 23.11.2021 having unique registration number AABCW8688EF20218 for the period from 23.11.2021 to assessment year 2024-25. The ld. CIT(E) issued notice of hearing dated 10.06.2024 and 05.11.2024. The assessee as per ld. CIT(E) filed part replies in response to aforesaid two notices, while led to the rejection of the application by ld. CIT(E) and provisional registration earlier granted also stood cancelled, on the grounds that the assessee has failed to file complete details/information required in support of genuineness of the activities , charitable objects and commencement of activities .The ld. CIT(E) dismissed the application of the assessee on 27.11.2024 as the matter was getting time barred. The assessee has filed part replies but it is averred that due to illness of the relevant person responsible for complying the ld. CIT(E) notices, complete replies could not be filed . It is further contended that a non speaking order was passed by ld. CIT(E) without providing reasons for rejection . Before us, the ld. Counsel for the assessee prayed that order dated 27.11.2024 passed by ld. CIT(E) be set aside and matter restored to the file of ld. CIT(E) for grant of proper opportunity of being heard to the assessee before disposing of the application for registration under clause (iii) of first proviso to Section 80G(5) on merits in accordance with law. The Department has no objection if the matter is restored to the file of ld. CIT(E) for denovo consideration of application filed by I.T.A No.6142/Del/2024 A.Y.:NA Page No. Wheels Global Foundation 4 the assessee for approval u/s 80G(5). It could be seen that the ld. CIT(E) issued two notices , the first notice of hearing was issued by ld. CIT(E) on 10.06.2024 and the order was passed by ld. CIT(E) on 27.11.2024. The assessee has also claimed that part details were filed before ld. CIT(E) owing to illness of relevant official responsible for filing replies before ld. CIT(E). The ld. CIT(E) rejected application filed by the assessee for grant of approval u/s 80G(5) and also the provisional registration earlier granted also stood cancelled by ld. CIT(E) vide aforesaid order. Serious prejudice is caused to the assessee. Thus, keeping in view of reasonableness and in the interest of justice and fairness to both the parties, we are setting aside the order dated 27.11.2024 passed by ld. CIT(E) and restore the matter back to the file of ld. CIT(E) for fresh determination of application filed by the assessee for grant of approval u/s 80G(5) on merits in accordance with law, after giving proper and reasonable opportunity of being heard to the assessee. The ld. CIT(E) will decide the application on merits in accordance with law. We clarify that we have not commented on the merits of the issue in this appeal, and all the contentions are kept open. The assessee is directed to comply with the notices issued by ld. CIT(E) in the set aside proceedings , otherwise ld. CIT(E) shall be free to decide the application of the assessee on merits in accordance with law. I.T.A No.6142/Del/2024 A.Y.:NA Page No. Wheels Global Foundation 5 Thus, in the result, the appeal of the assessee is allowed for statistical purposes. We order accordingly. 5.In the result , appeal of the assessee in ITA no. 6142/Del/2024 for assessment year : NA is allowed for statistical purposes. Order pronounced on 28.02.2025 at New Delhi in Open Court in the presence of both the parties. Sd/- Sd/- (MAHAVIR SINGH) (RAMIT KOCHAR) VICE PRESIDENT ACCOUNTANT MEMBER Delhi : Dated :28 /02/2025 आदेश आदेश आदेश आदेश क\u0002 क\u0002 क\u0002 क\u0002 \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप अ\tेिषत अ\tेिषत अ\tेिषत अ\tेिषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (E) 5. DR, ITAT, New Delhi 6. Guard file. By order/आदेश से, ASSISTANT REGISTRAR ITAT, New Delhi "